Affirmation of the Rating by S&P

PJSC MAGNIT - Affirmation of the Rating by S&P

PR Newswire

London, April 22

Press-release

Krasnodar

April 22, 2016

PJSC “Magnit” Announces the Affirmation of its Rating at “BB+” level by S&P

Krasnodar, April 22, 2016: PJSC “Magnit”, Russia’s largest retailer (the “Company”; MOEX and LSE: MGNT) announces the affirmation of its rating at “BB+” level by Standard & Poor's Rating Services.

Please be informed that on April 22, 2016 Standard & Poor’s Rating Services has affirmed the rating of Magnit at “BB+” level with negative outlook, as the company continues to maintain the leading position at the food retail market and high profitability despite the difficult operational environment.

The negative outlook on Magnit reflects the negative outlook on the Russian Federation. S&P might consider revising outlook to stable if they take a similar action on Russia.

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Company description:

Magnit is Russia's largest food retailer. Founded in 1994, the company is headquartered in the southern Russian city of Krasnodar. As of March 31, 2016, Magnit operated 34 distribution centers and about 12,434 stores (9,715 convenience, 382 hypermarkets, and 2,337 drogerie stores) in 2,385 cities and towns throughout 7 federal regions of the Russian Federation.

In accordance with the audited IFRS results for 2015, Magnit had revenues of RUB 951 billion and an EBITDA of RUB 104 billion. Magnit's local shares are traded on the Moscow Stock Exchange (MOEX: MGNT) and its GDRs on the London Stock Exchange (LSE: MGNT) and it has a credit rating from Standard & Poor's of BB+. Measured by market capitalization, Magnit is one of the largest retailers in Europe.